So, you’re looking to invest in something different, huh? You’re not alone. Alternative investments are gaining major traction among investors seeking bigger returns outside the stock market.
One of the most popular options is real estate investing. Whether you invest in residential or commercial property, real estate offers the potential for solid returns and cash flow. You can invest in real estate investment trusts (REITs) or crowdfunded real estate, putting your money into property portfolios without the hassle of ownership.
For those seeking a ” haven” in market volatility, precious metals like gold and silver are attractive alternatives. You can invest in the physical metals themselves or mining stocks and exchange-traded funds (ETFs). Gold and silver tend to hold their value during inflation and market downturns.
If you’re an adventurous investor, you may want to consider cryptocurrencies like Bitcoin. The crypto market is highly speculative but also highly rewarding. Major price swings are common, so only invest money you can afford to lose. But if you pick the right digital currency at the right time, you could see huge gains.
Alternative investments provide exciting opportunities outside the regular stock market. With options like real estate, precious metals, and cryptocurrency, you can build a diverse portfolio and take advantage of market niches that traditional investors often miss. The potential rewards are huge if you go in with your eyes open to the risks.
Best Alternative Investments
If you’re looking to diversify your portfolio beyond stocks and bonds, alternative investments are an intriguing option. Here are some of the best alternative investments:
- Masterworks: Best overall, especially for art enthusiasts looking for fractional ownership in famous paintings. You can invest in pieces by Picasso, Monet, Basquiat, and more. Returns are uncorrelated to traditional markets.
- Yieldstreet: Best for individual investors wanting to tap into alternative asset classes like real estate, marine finance, and litigation finance. Average returns of 8-12% and low correlation to the stock market.
- FarmTogether: Best for those interested in agricultural land investments. You can invest in US farmland and earn returns through land appreciation, rent, and crop sales. Historically stable returns and inflation protection.
- iTrustCapital: Best for digital currency enthusiasts wanting an IRA with crypto trading. Tax-advantaged way to invest in and trade cryptocurrencies like Bitcoin and Ethereum. High risk/high reward.
- Vinovest: Best for wine lovers seeking long-term returns through wine investments. Professionally curated portfolios of investment-grade wine aiming for 10-15% returns. Uncorrelated to traditional markets.
- Mainvest: Mainvest allows you to invest in local businesses. You can invest as little as $100 in businesses creating jobs and supporting communities where you live. Businesses get funding to grow, and you have the potential for solid returns and interest. Think of it as investing in your neighborhood.
- Alto IRA: An Alto IRA gives you more investment choices for your IRA. In addition to stocks and bonds, you can invest in alternatives like real estate, private companies, cryptocurrency, and more.
Masterworks
With Masterworks, you can invest in blue-chip art without the typical high cost and risk associated with buying original pieces.
Masterworks is an alternative investment platform that allows you to purchase shares in valuable, investment-grade artwork. Once the SEC approves an offering for a piece of art, you have 90 days to invest in shares, with no minimum buy-in. How many shares you purchase depends on your budget and appetite for risk. Shares typically start around $20 each.
Masterworks charge a 1.5% annual fee, deducted from your account value. They also take 20% of the proceeds when a piece of art sells on the open market. In exchange, you get:
- Excellent art investment research and analysis
- Access to a fast-growing asset class
- Great customer support
- An easy-to-use website and mobile app
- Educational resources and an engaged community
If you’re looking to diversify your portfolio beyond traditional investments, Masterworks offers an innovative way to invest in physical assets with strong growth potential. You can own shares of renowned works of art without purchasing entire, multi-million-dollar pieces.
Yieldstreet
If you’re looking for an alternative investment with potentially higher returns, Yieldstreet is worth considering. This crowdfunding platform offers access to non-traditional asset classes like commercial real estate, marine vessels, legal finance, and art.
While investment minimums vary for each offering, many deals reportedly require at least $60,000 to get started. Once you’ve invested, Yieldstreet charges an annual management fee between 0-2% of your investment amount. They also deduct a $100 annual administrative fee for some offerings like their Special Purpose Vehicles.
Yieldstreet claims to provide strong risk-adjusted returns by conducting extensive due diligence on each investment. They evaluate factors like the borrower’s experience, collateral value, and overall market conditions. If an offering meets its criteria, Yieldstreet will list it on its website for investors.
Some investors may find the lack of liquidity with these alternative investments concerning. Your money is often tied up for several years. However, the potential for higher returns and portfolio diversification could make Yieldstreet’s offerings attractive, especially if you have a long-term investment horizon.
FarmTogether
FarmTogether is an intriguing alternative investment platform. They offer investors the opportunity to invest in US farmland through crowdfunding. FarmTogether has several investment options to choose from:
- Crowdfunded Farmland Offerings: Invest as little as $15,000 for 8-12 years.
- Sustainable Farmland Fund: Invest $5,000 for a minimum of 2 years.
- Sole Ownership Bespoke Offerings: Invest $1 million or more.
FarmTogether aims to make farmland investing accessible for all investors. Their platform is intuitive and provides educational resources to help investors make informed decisions. FarmTogether has a comprehensive investment process:
- Global Macro-View
- End Market Analysis
- Property Analysis
- Investment Structuring
- Investment Execution
- Active Management
FarmTogether is transparent about its process and committed to helping investors achieve stable returns from this alternative asset class. For investors looking to diversify into real assets, farmland investing with FarmTogether could be an attractive option.
iTrustCapital
iTrustCapital offers a unique opportunity to invest in alternative assets through your IRA. Their user-friendly platform makes it simple to fund your account and trade precious metals like gold and silver and popular cryptocurrencies.
iTrustCapital charges no monthly fees for personal accounts. They charge transaction fees for buying and selling on their platform, including 1% for crypto trades and $50 per ounce for gold. Silver trades are just $2.50 per ounce. These fees are very competitive compared to other providers.
You’ll fund your iTrustCapital account through an IRA transfer or rollover to get started. Then, you can use their intuitive trading platform and digital wallets to invest in the alternative assets of your choice. iTrustCapital handles all the IRS reporting to ensure your investments stay compliant within your self-directed IRA.
Whether you want to invest in Bitcoin, Ethereum, gold bullion bars, or silver coins, iTrustCapital gives you an affordable, low-hassle way to add alternative investments to your retirement portfolio.
Vinovest
Vinovest is a unique investment platform that lets you tap into the lucrative fine wine market without being a sommelier.
Vinovest’s expert team sources, buy, authenticates, and stores investment-grade wines on your behalf. All you have to do is sign up fund your account, and Vinovest will build a diversified portfolio of rare, vintage wines tailored to your preferences.
Vinovest offers four pricing tiers, so you can start with a small amount and scale up as your confidence and portfolio grow. The entry-level tier provides access to Vinovest’s buying power and expertly curated selections. Higher tiers include additional benefits like a personal account manager, priority access to limited wines, and invitations to exclusive winery tours.
No matter which tier you choose, Vinovest handles all the logistics so you can sit back and watch the value of your portfolio appreciate over time. The wine market has a history of solid returns, often outpacing traditional equities. And since you own the physical assets, your investment is tangible and not subject to broker risk.
If you’re looking for an exciting new asset class to diversify your portfolio, consider fine wine through Vinovest. They’ve made alternative investing surprisingly accessible.
Mainvest
Mainvest allows ordinary people to invest in local, brick-and-mortar businesses for as little as $100. This platform offers a new way to invest and an opportunity to diversify.
There are no fees charged to investors when they create an account with Mainvest. The only rule is you need to have at least $100 to invest.
Once you’ve joined Mainvest, you’ll have plenty of businesses to choose from, as the platform has attempted to limit the most concerning high-risk investments via its extensive background-checking process. The type of funding private businesses require will affect the investment that individual investors will have in the company.
Equity Investment Security allows investors to own an actual stake in the business. As the business grows in value, so can your investment. Revenue-sharing notes offer regular interest payments to investors based on the business’s revenue.
Its support materials for investor education and responsive customer service are ideal for new investors. With a low minimum investment, there’s no reason not to invest a small amount of money on Main Street. Check out Mainvest and discover the potential of local investing.
Alto IRA
Alto IRA offers self-directed IRA investors an exciting new option: the ability to invest in alternative assets like cryptocurrencies, real estate, precious metals, and more.
Integrated with Coinbase, the Alto CryptoIRA gives you access to over 200 cryptocurrencies. An insurance policy covers your Coinbase holdings, and low fees make trading affordable. The minimum is $10,000.
Other options include:
- AcreTrader $10,000 minimum
- AngelList $1,000 minimum
- Capital Engine $1,000 minimum
- FarmTogether $15,000 minimum
- Republic $100 minimum
- Masterworks $10,000 minimum
With flexible terms and investment options galore, Alto IRA is an innovative way to supercharge your retirement savings. Why settle for the usual stocks and bonds when you can invest in the alternative assets of your choice? Check out AltoIRA.com to get started.
Overview of Alternative Investments
Alternative investments can be attractive for investors looking to diversify their portfolios. While riskier than traditional investments, alternative assets have the potential for higher returns over the long run.
However, they are more complex and difficult to value, often requiring extensive due diligence. Alternative investments may also be less liquid, meaning your money could be tied up for years.
If you decide to allocate a portion of your portfolio to alternative investments, work closely with your financial advisor to determine how much you can afford to invest, your risk tolerance, and your investment time horizon.
Also, diversify among different alternative investments, including real estate, hedge funds, private equity, and commodities. While past performance is no guarantee of future results, alternative investments have historically provided strong returns and portfolio diversification. With the proper amount of research and guidance, they could be worth considering to enhance your investment returns over the long term.